/raid1/www/Hosts/bankrupt/TCREUR_Public/090624.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Wednesday, June 24, 2009, Vol. 10, No. 123
Headlines
A U S T R I A
CAPELLA PLAY: Creditors Have Until July 13 to File Claims
HOTEL POST: Creditors Must File Claims by July 13
IMMOPLAN GMBH: Creditors Have Until July 13 to File Claims
METAL GROUP: Creditors Must File Claims by July 10
SPAMROBIN GMBH: Creditors Must File Claims by July 13
B U L G A R I A
FIRST INVESTMENT: Fitch Affirms Individual Rating at 'D'
G E R M A N Y
ARCANDOR AG: Mfi Mulls Bid for Some Karstadt Stores
ESCADA AG: Seeks to Avoid Insolvency Thru Financial Restructuring
HEIDELBERGCEMENT AG: Fitch Affirms Issuer Default Rating at 'B'
PORSCHE AUTOMOBIL: KfW Rejects EUR1.75 Bln Loan Request
PORSCHE AUTOMOBIL: Nine-Month Global Sales Down 28 Percent
I R E L A N D
ALLIED IRISH: Raises EUR1 Billion in Debt Swap
MOTIF FINANCE: S&P Downgrades Rating on EUR25 Mil. Notes to 'D'
NEUROCURE: Losses Prompt Delta Partners to Liquidate Business
RQB: Bank of Ireland Seizes Property Assets of Two Companies
K A Z A K H S T A N
ORAL STROY: Creditors Must File Claims by July 3
PETRO KAZAKHSTAN: Creditors Must File Claims by July 3
STROY DOM: Creditors Must File Claims by July 3
T-A TELECOM: Creditors Must File Claims by July 3
VAS SERVICE: Creditors Must File Claims by July 3
R O M A N I A
* Moody's Reviews GLC Deposit Ratings of Three Romanian Banks
R U S S I A
ANGARA-LES LLC: Creditors Must File Claims by July 15
BIZON LLC: Creditors Must File Claims by July 15
DON-STAL-KONSTRUKTSIYA LLC: Creditors Must File Claims by July 15
GEVS-STROY LLC: Buryatia Bankruptcy Hearing Set July 9
RASPADSKAYA OJSC: Fitch Affirms LT Issuer Default Rating at 'B+'
SOUTHERN TELECOM: S&P Affirms Corporate Credit Rating at 'B'
TAYGINSKIY CRASH: Creditors Must File Claims by July 15
URALSVYAZINFORM OJSC: S&P Cuts Corporate Credit Rating to 'B+'
* SAMARA OBLAST: S&P Changes Outlook to Neg.; Keeps 'BB+' Rating
S L O V A K R E P U B L I C
SKYEUROPE HOLDING: Slovak Court Grants Creditor Protection
S P A I N
TDA 25: S&P Lowers Rating on Class D Notes to 'D'
S W I T Z E R L A N D
DETROIT DIESEL: Creditors Must File Claims by July 3
HEGEN AG: Creditors Must File Claims by July 8
TSL T-SHIRT: Claims Filing Deadline Is July 1
PRICITEC GMBH: Creditors Must File Claims by June 30
VISTA FILM: Claims Filing Deadline Is July 10
U K R A I N E
BELOPOLYE MACHINEBUILDING: Court Starts Bankruptcy Procedure
INDUSTRIAL DEV'T: Court Starts Bankruptcy Supervision Procedure
INTER-INVEST COAL: Court Starts Bankruptcy Supervision Procedure
INTERUKR AGRO: Court Starts Bankruptcy Supervision Procedure
REKOM-Z LLC: Court Starts Bankruptcy Supervision Procedure
* Moody's Cuts Long-Term GLC Deposit Ratings of 3 Ukrainian Banks
U N I T E D K I N G D O M
AERODOME HOTEL: In Administration; PwC Appointed
AVIV ELECTRONICS: Creditors' Meeting Set July 8
BRIXTON PLC: Segro Agrees Discounted All-Share Offer
BROOKLANDS EURO: Moody's Junks Rating on EUR50 Mil. Notes
BROOKLANDS EURO: Moody's Junks Rating on Class A2 Notes
CANDOVER INVESTMENTS: Charterhouse Buys Wood Mackenzie Stake
CATALYST HEALTHCARE: Moody's Gives Positive Outlook on Ba2 Rating
CATTLES PLC: Close to Reaching Standstill Agreement w/ Creditors
CEVA GROUP: Exchange Offer Cues S&P to Junk Corporate Rating
F.E. MOTTRAM: In Administration; KPMG Appointed
FOUR SEASONS: PIK Lenders Reject Debt Restructuring Proposal
LLOYDS TSB: Moody's Affirms Non-Cum Preference Shares at 'B3'
ROYAL BANK: UKFI Approves New Pay Package for CEO Stephen Hester
YELL GROUP: May Seek Covenant Reset to Avoid Breach
* PwC Says Ailing Companies Have Only 50pc Chance of Rescue
* EUROPE: Fitch Says Outlook for Automotive Sector Still Difficult
*********
=============
A U S T R I A
=============
CAPELLA PLAY: Creditors Have Until July 13 to File Claims
---------------------------------------------------------
Creditors of Capella Play GmbH have until July 13, 2009, to file
their proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 20, 2009 at 9:00 a.m. at:
Land Court of Klagenfurt
Meeting Room 225
Second Floor
Klagenfurt
Austria
For further information, contact the company's administrator:
Dr. Herwig Hasslacher
Hauptplatz 25
9500 Villach
Austria
Tel: 04242/21 93 99
Fax: 04242/219399-9
E-mail: kanzlei@hh-law.at
HOTEL POST: Creditors Must File Claims by July 13
-------------------------------------------------
Creditors of Hotel Post Touristik GmbH have until July 13, 2009,
to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 20, 2009 at 9:30 a.m. at:
Land Court of Klagenfurt
Hall 225
Second Floor
Austria
For further information, contact the company's administrator:
Mag. Dr. Philipp Moedritscher
Gasserplatz 9
9620 Hermagor
Switzerland
Tel: 04282/20 620
Fax: 04282/20 620-40
E-mail: kanzlei@rechtsanwalt-hermagor.at
IMMOPLAN GMBH: Creditors Have Until July 13 to File Claims
----------------------------------------------------------
Creditors of Immoplan GmbH have until July 13, 2009, to file their
proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 23, 2009 at 3:00 p.m at:
Land Court of Wels
Hall 101
Wels
Austria
For further information, contact the company's administrator:
Mag. Stefan Weidinger
Dr. Koss Strasse 3
4600 Wels
Austria
Tel: 07242/67354-0
Fax: 07242/67354-50
E-mail: kanzlei@holme.at
METAL GROUP: Creditors Must File Claims by July 10
--------------------------------------------------
Creditors of Metal Group Metallverarbeitung GmbH have until
July 10, 2009, to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 24, 2009 at 10:15 a.m at:
Land Court of Linz
Room 522
5th Floor
Linz
Austria
For further information, contact the company's administrator:
Mag. Roland Zimmerhansl
Harrachstrasse 6
4020 Linz
Austria
Tel: 0732657070
Fax: 073265707065
E-mail: zimmerhansl@sdsp.at
SPAMROBIN GMBH: Creditors Must File Claims by July 13
-----------------------------------------------------
Creditors of SPAMRobin GmbH have until July 13, 2009, to file
their proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 23, 2009 at 2:40 p.m. at:
Land Court of Wels
Hall 101
Wels
Austria
For further information, contact the company's administrator:
Dr. Martin Stossier
Ringstrasse 4/Plobergerstrasse 7
4600 Wels
Austria
Tel: 07242/42605-0
Fax: 07242/42605-20
E-mail: stossier@ra-stossier.at
===============
B U L G A R I A
===============
FIRST INVESTMENT: Fitch Affirms Individual Rating at 'D'
--------------------------------------------------------
Fitch Ratings has upgraded Bulgaria-based First Investment Bank's
Support rating from '5' to '3' and affirmed its other ratings at
Long-term Issuer Default 'BB-', Short-term IDR 'B', and Individual
'D'. As a result Fitch has also revised the Support Rating Floor
to 'BB-' from 'No Floor'.
The upgrade of the Support rating recognizes the increasing
likelihood, in Fitch's opinion, of Support being provided by the
authorities if need be given FIBank's stature as the largest
Bulgarian-owned bank and its systemic importance. Any downgrade
of Bulgaria's LT foreign currency IDR ('BBB-'/Negative Outlook)
could result in a downgrade of FIBank's LT IDR. The Negative
Outlook on FIBank's IDR reflects that on Bulgaria's LT FC IDR.
FIBank's liquidity remains under pressure given the bank's
upcoming financing needs (including a EUR117 million syndicated
loan due in October 2009) and contractually short-term customer
deposit base. Difficult market conditions have postponed EMTN
issuance in 2008 and 2009, depriving FIBank of the long-term
funding it needs to increase its balance sheet and which underpins
profitability.
FIBank's performance deteriorated in 2008 and Q109 and given the
conditions facing the Bulgarian banking sector a further
deterioration is expected for the rest of 2009 given lower
business volumes, tighter margins and higher loan impairment
charges. Performance ratios lag those of its peers and, in the
absence of loan growth, will likely decline further, dampening
internal capital generation and in turn the bank's ability to
grow.
Asset quality remains acceptable but this is expected to
deteriorate as loans season and the economy slows. Borrower
concentration is also a concern.
FIBank's capitalization is moderate with Basel II capital adequacy
ratio of 13% at end-Q109 (2008 profits were capitalized at end May
09), particularly given the large concentrations in the bank's
exposures and potential asset quality deterioration.
Founded in 1993, FIBank was the sixth-largest bank in Bulgaria by
total assets at end-Q109. It had market shares of 6.1% and 7.7%
of banking sector assets and deposits, respectively. It is the
largest remaining Bulgarian-owned bank. FIBank is listed on the
Sofia Stock Exchange. It has a small subsidiary bank in Albania.
=============
G E R M A N Y
=============
ARCANDOR AG: Mfi Mulls Bid for Some Karstadt Stores
---------------------------------------------------
Eva Kuehne at Reuters reports that Matthias Boening, the chief
executive of Management fuer Immobilien (Mfi), told financial
daily Handelsblatt that the German shopping center developer and
operator plans to bid for some of Arcandor's Karstadt department
stores.
Reutes relates Mr. Boening told Handelsblatt that it is possible
to transform 20 of the 91 department store locations.
Hilde Arends at Dow Jones Newswires reports Mfi said in a
statement on its Web site it remains to be seen which locations
will be put on the market -- and won't be continued as department
stores -- and which of those offer good prospects for retail.
Reuters discloses according to Handelsblatt, Mfi said it would
look into an acquisition of the stores as soon as official
insolvency proceedings begin on Sept. 1. Arcandor's insolvency
administrator Klaus Hubert Goerg said last week that there would
not be any sales until Sept. 1.
Bankruptcy
On June 11, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Arcandor on June 9 filed for bankruptcy
protection after the German government turned down its request for
loan guarantees. German Chancellor Angela Merkel, as cited by
Bloomberg News, said Arcandor's collapse was "unavoidable" after
investors and banks offered too little to save the retailer.
Bloomberg News disclosed Euro am Sonntag said Tuesday that the
retailer won concessions worth about EUR750 million after
overnight talks with suppliers, creditors, landlords and
shareholders.
Bloomberg News recalled the government on June 8 rejected two
applications for help by Arcandor, which employs 43,000 people.
According to Bloomberg News, the retailer sought loan guarantees
of EUR650 million (US$904 million) from Germany's Economy Fund
program as debt came due this week. It also sought a further
EUR437 million from a state-owned bank, Bloomberg News noted.
About Arcandor AG
Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/--
formerly KarstadtQuelle AG, is a tourism and retail group. Its
three core business areas are tourism, mail order services and
department store retail. The Company's business areas are covered
by its three operating segments: Thomas Cook, Primondo and
Karstadt. Thomas Cook Group plc is a tour operator with
operations in Europe and North America, set up as a result of a
merger between MyTravel and Thomas Cook AG. It also operates the
e-commerce platform, Thomas Cook, supporting travel services.
Primondo has a portfolio of European universal and specialty mail
order companies, including the core brand Quelle. Karstadt
operates a range of department stores, such as cosmopolitan
stores, including KaDeWe (Kaufhaus des Westens), Karstadt
Oberpollinger and Alsterhaus; Karstadt brand department stores;
Karstadt sports department stores, offering sports goods in a
variety of retail outlets, and a portal, karstadt.de that offers
online shopping, among others.
ESCADA AG: Seeks to Avoid Insolvency Thru Financial Restructuring
-----------------------------------------------------------------
Maria Sheahan at Reuters reports that Escada AG said it will be
able to avert an insolvency if its financial restructuring plan is
successfully implemented.
According to Reuters, Escada, which has been struggling with
falling sales in the recession, aims to raise cash and reduce debt
sufficiently in the next two months to avoid going insolvent.
Reuters relates the company previously warned it risked going bust
as soon as next month.
Citing the company's six-month financial report, Reuters discloses
at the end of April, Escada's net debt was at EUR187.6 million
(US$260.7 million), compared with EUR177.1 million at the end of
October. Escada's cash and cash equivalents had declined to
EUR24.7 million after the first six months of its fiscal year,
compared with EUR26.6 million a year earlier, Reuters notes.
ESCADA AG -- http://www.escada.com/-- is a Germany-based fashion
group engaged in women's designer fashion. The Company is
structured into two segments: ESCADA and PRIMERA. Under its core
brand ESCADA, the Company sells women's designer fashions for
daytime, evening, business, leisure, wellness and special
occasions, as well as couture. The fashion range is supplemented
with accessories like handbags, shoes and small leather goods.
Fragrances, eyewear, kids wear and jewelry from licensed partners
are also sold under the ESCADA brand. The Company also offers the
ESCADA Sport product line with clothes and accesoires. Through
its wholly owned subsidiary, PRIMERA AG, the Company additionally
sells the mid-priced brands apriori, BiBA, cavita and Laurel. As
of October 31, 2008, ESCADA AG operated 182 own shops and 225
franchise shops in more than 60 countries. Its manufacture
capacities are mainly outsourced to partner operations, located in
Germany, Italy, Eastern Europe and Asia.
HEIDELBERGCEMENT AG: Fitch Affirms Issuer Default Rating at 'B'
---------------------------------------------------------------
Fitch Ratings has affirmed Germany-based HeidelbergCement AG's
Long-term Issuer Default rating at 'B' and removed the rating from
Rating Watch Negative. A Negative Outlook has been assigned.
This follows HC's announcement that it has completed the
refinancing of its bank debt on a secured basis.
Simultaneously, the agency has downgraded HC's and Hanson plc's
senior unsecured debt to 'CCC' from 'B' and removed the ratings
from RWN. Fitch has also affirmed HC's Short-term IDR at 'B' and
removed it from RWN. The Recovery Rating on the senior unsecured
debt is 'RR6', reflecting poor recovery prospects in the event of
a default, in light of high total debt levels and over 55% of
total debt being on a secured basis.
On June 18, 2009 HC announced that it had secured a EUR8.7 billion
syndicated loan agreement with maturity on December 15, 2011 to
refinance its bank debt and other bilateral credit lines and
loans. This includes the EUR5 billion Hanson term B acquisition
loan, maturing in May 2010, which had been a major refinancing
risk and the underlying reason for the RWN. Under the new loan
agreement, the bank lenders benefit from a security package
including upstream guarantees of material subsidiaries and share
pledges, among others. Fitch also notes that the financial
constraints on HC's major shareholder, the Merckle family, which
the agency had viewed as a potential obstacle to HC's efforts in
securing refinancing, have been temporarily lifted. This follows
a standstill agreement reached with its creditors until the end of
2010.
The Negative Outlook reflects Fitch's view that, notwithstanding
the refinancing, HC will face challenges in achieving
extraordinary debt reduction measures such as an equity increase
or sizable asset disposals, given continuing difficult financial
market conditions. Hence HC's credit metrics are likely to remain
weak in the coming 24 months. The agency also views the
concentration of the debt maturity profile in December 2011 as a
key rating risk, especially in view of the complexity in creditor
interrelationship arising from the presence of secured lenders.
Fitch's latest forecasts for HC include a potential mid-teen
decline in revenue in 2009 and a flat performance in 2010, as well
as deteriorating EBITDA margins in 2009 before a slight recovery
in 2010. Under this scenario expected lower cash flow from
operations is likely to result in only slightly positive free cash
flow compared to a five-year average of 4% free cash flow/revenue.
In this context Fitch forecasts net leverage above 5x until FYE10.
In its forecasts the agency has not considered any potentially
positive impact on the company's performance stemming from
economic stimulus packages announced in a number of major
economies, or any extraordinary financial measures, due to the
uncertain timing of any such events.
The ratings continue to reflect HC's strong business profile and
leading market positions in cement and aggregates, which are
essential for establishing solid market presence in downstream
activities such as ready-mixed concrete and concrete products.
The group benefits from good diversification by geography -- with
presence in 50 countries -- and by end-market.
In common with other global building materials players, HC's Q109
results were negatively impacted by the combination of the
worsening global economic crisis and adverse weather conditions.
Cement and clinker sales volumes fell 18% to 16 million tonnes
(19.6mt in Q108). Aggregates shipments were down 25.5% to
44.5 million tonnes. Revenue of EUR2.4bn in Q109 was down 23%
compared with Q108, due to negative trading conditions in eastern
Europe and central Asia, as well as Spain, the UK, Turkey and
North America. HC's operating EBITDA margin declined to 8.6% in
Q109 from 12.8% in Q108 due to a significant worsening of
profitability in Europe and North America. While cost cutting and
efficiency measures have been implemented, HC expects a decline in
operating income in 2009 as a result of the prevailing global
downturn.
PORSCHE AUTOMOBIL: KfW Rejects EUR1.75 Bln Loan Request
-------------------------------------------------------
State-owned development bank KfW Group has rejected Porsche
Automobil Holding SE's EUR1.75 billion loan request as the company
failed to show the economic crisis led to funding constraints,
Chris Reiter and Andreas Cremer at Bloomberg News reports citing
two people familiar with the negotiations.
Bloomberg News recalls Porsche applied for the loan after failing
to reach an agreement with commercial banks on funds needed to run
its operations. Bloomberg News discloses a person said the
company offered EUR3 billion in Volkswagen shares as collateral
and wanted to pay EUR6 million interest per month.
Bloomberg News relates two people familiar with the negotiations
said KfW wants Porsche to be more specific about how the loan will
be used and how it plans to repay it. Porsche spokesman Albrecht
Bamler, as cited by Bloomberg News, said talks with politicians
and KfW continue, and no decisions have been reached. Bloomberg
News states the final decision on the loan rests with a government
steering committee.
"There are clear question marks whether the financial emergency
Porsche claims for itself is a result of the financial crisis,"
Bloomberg News quoted Steffen Kampeter, budget spokesman for
Chancellor Angela Merkel’s Christian Democratic Union, as saying
in a June 19 interview with Deutschlandfunk radio.
According to Bloomberg News, Porsche plans to make a second
approach for state funding.
On June 18, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Porsche's net debt tripled after the
company increased its stake in Volkswagen to 50.8 percent at the
beginning of this year from a 42.6 percent holding in
October.
Headquartered in Stuttgart, Germany Porsche Automobil Holding SE
-- http://www.porsche-se.com-- is a holding company engaged in
the car manufacture industry. The Company's core products are
sports cars and all-terrain vehicles. The Porsche sports car
range includes the Boxster, the Cayman, the 911 and the Carrera
GT. The Boxster and the Boxster S are contemporary
reinterpretations of the Company's original roadsters, the 356/1
and the 550 Spyder. There are several varieties of the 911,
representing the model's continuous evolution. The Carrera GT has
the race-derived chassis construction and minimum weight. The
Company's all-terrain models, Cayenne, Cayenne S, Cayenne Turbo
and Cayenne Turbo S are balanced, four-wheel drive vehicles for
on-road and off-road use. Porsche Automobil Holding SE also
offers financing services, spare parts and accessories for new and
classic models, as well as an approved used car service.
PORSCHE AUTOMOBIL: Nine-Month Global Sales Down 28 Percent
----------------------------------------------------------
BBC News reports Porsche Automobil Holding SE' global sales
declined 28% to 53,635 vehicles between August 2008 and the end of
April, compared with a year earlier.
According to BBC News, on a financial basis, its sales dropped 15%
to EUR4.6 billion (US$6.4 billion; GBP3.9 billion).
BBC News notes the figures do not include those of Volkswagen
(VW), in which Porsche increased its stake to 51% in January.
Porsche, as cited by BBC News, said it had experienced falling
demand across the world, but that the decline was most extensive
in the US and Canada. BBC News discloses on a model-by-model
basis, Porsche's nine-month decline in sales was most pronounced
for its Boxster and Cayman models, which fell a combined 47%.
On June 18, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Porsche's net debt tripled after the
company increased its stake in Volkswagen to 50.8 percent at the
beginning of this year from a 42.6 percent holding in
October.
Headquartered in Stuttgart, Germany Porsche Automobil Holding SE
-- http://www.porsche-se.com-- is a holding company engaged in
the car manufacture industry. The Company's core products are
sports cars and all-terrain vehicles. The Porsche sports car
range includes the Boxster, the Cayman, the 911 and the Carrera
GT. The Boxster and the Boxster S are contemporary
reinterpretations of the Company's original roadsters, the 356/1
and the 550 Spyder. There are several varieties of the 911,
representing the model's continuous evolution. The Carrera GT has
the race-derived chassis construction and minimum weight. The
Company's all-terrain models, Cayenne, Cayenne S, Cayenne Turbo
and Cayenne Turbo S are balanced, four-wheel drive vehicles for
on-road and off-road use. Porsche Automobil Holding SE also
offers financing services, spare parts and accessories for new and
classic models, as well as an approved used car service.
=============
I R E L A N D
=============
ALLIED IRISH: Raises EUR1 Billion in Debt Swap
----------------------------------------------
BreakingNews.ie reports that Allied Irish Banks plc said Monday it
has raised about EUR1 billion in a debt swap exercise with its
bondholders
BreakingNews.ie relates on a statement to the Irish Stock
Exchange, the bank said it had accepted offers to exchange six
series of Euro and Sterling denominated Tier 1 and Tier 2
securities for the equivalent of circa EUR1.3 billion of new Lower
Tier 2 capital qualifying securities.
"The equity accretion for AIB Group arising from the exchange
offers is expected to be circa EUR1 billion," BreakingNews.ie
quoted the company as saying.
David Labanyi at the Irish Times reports the exchange is part of
the bank's strategy to raise an additional EUR1.5 billion in
capital, on top of the EUR3.5 billion recapitalization from the
state in return for a 25 per cent stake, to help it absorb losses
from property lending. The debt exchange, the Irish Times says,
will improve the quality of the capital in AIB's reserves but will
not increase its overall capital.
Headquartered in Dublin, Ireland, Allied Irish Banks, p.l.c.,
together with its subsidiaries (collectively referred to as the
AIB Group or the Group), -- http://www.aibgroup.com/-- conducts
retail and commercial banking business in Ireland. It also
provides corporate lending and capital markets activities from its
head office at Bankcentre and from Dublin's International
Financial Services Centre. The Group also has overseas branches
in the United States, Germany, France and Australia, among other
locations. The business of AIB Group is conducted through four
operating divisions: AIB Bank Republic of Ireland division,
Capital Markets division, AIB Bank UK division, and Central &
Eastern Europe division. In February 2008, the Group acquired the
AmCredit mortgage business in the Baltic states of Latvia,
Lithuania and Estonia. In September 2008, the Group also acquired
a 49.99% shareholding in BACB.
* * *
Allied Irish Banks plc continues to carry a 'D' individual rating
from Fitch Ratings. The rating was downgraded by Fitch to its
current it level from 'C' in February 2009.
MOTIF FINANCE: S&P Downgrades Rating on EUR25 Mil. Notes to 'D'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on Series
2007-1 EUR25 million managed synthetic CDO^2 notes due December
2014 issued by Motif Finance (Ireland) PLC to 'D' from 'CCC-'.
The rating was subsequently withdrawn.
The actions follow a mandatory redemption of the notes triggered
by a reduction of the principal amount of the notes to zero. The
portfolio in the transaction had suffered several credit events,
which resulted in a loss that exceeded the available subordination
and caused a full loss of principal to the noteholders.
The rating actions on the affected transaction are:
Rating lowered:
Rating
------
Name To From
---- -- ----
Motif Finance (Ireland) PLC D CCC-/Watch Neg
Series 2007-1
Rating withdrawn:
Rating
------
Name To From
---- -- ----
Motif Finance (Ireland) PLC NR D
Series 2007-1
NEUROCURE: Losses Prompt Delta Partners to Liquidate Business
-------------------------------------------------------------
Gavin Daly at the Sunday Business Post Online reports that Delta
Partners has decided to liquidate Neurocure following a review of
the Dublin-based drugmaker's prospects.
The report relates plans for large scale funding were
unsuccessful and the company struggled in recent years. According
to the report, new accounts for Neurocure show that it had no
income in 2008 and had racked up total losses of EUR1.9 million by
the end of the year. The losses left the firm with a deficit of
EUR1.1 million on its shareholders' funds, the report notes.
Delta, which is the main investor Neurocure, had provided a
EUR1 million convertible loan to Neurocure, and will also meet the
costs of liquidating the company, the report discloses.
Founded in 2003 Neurocure was involved in 'reprofiling' drugs,
finding new uses for old drugs to treat psychiatric conditions and
diseases of the central nervous system.
RQB: Bank of Ireland Seizes Property Assets of Two Companies
------------------------------------------------------------
Ian Kehoe at the Sunday Business Post Online reports that Bank of
Ireland has seized property assets from two companies controlled
by property investment firm RQB.
According to the report, the bank has appointed a receiver over
assets controlled by RQB Malahide and RQB (Diswellstown) after
becoming concerned about its exposure to the companies.
The report discloses the bank seized RQB Malahide's properties
located in Broomfield in Malahide. It also seized the
Diswellstown House in Castleknock in Dublin 15, and a plot of land
on nearby Carpenstown Road. Both properties are owned by RQB
(Diswellstown), the report notes. David Carson, a partner with
Deloitte accountants in Dublin, was installed as receiver over the
properties, the report relates.
The report notes a spokeswomen for RQB said RQB Malahide and RQB
(Diswellstown), had entered receivership.
===================
K A Z A K H S T A N
===================
ORAL STROY: Creditors Must File Claims by July 3
------------------------------------------------
LLP Oral Stroy Region is currently undergoing liquidtion.
Creditors have until July 3, 2009, to submit proofs of claim to:
Chapaev Str. 1
Uralsk
West Kazakhstan
Kazakhstan
PETRO KAZAKHSTAN: Creditors Must File Claims by July 3
------------------------------------------------------
LLP Petro Kazakhstan Retail Marketing is currently undergoing
liquidation. Creditors have until July 3, 2009, to submit proofs
of claim to:
Business Center Orken
Beibitshilik Str. 25
Astana
Kazakhstan
STROY DOM: Creditors Must File Claims by July 3
-----------------------------------------------
Creditors of LLP Stroy Dom Service have until July 3, 2009, to
submit proofs of claim to:
Dostyk Ave. 44-99
Almaty
Kazakhstan
Tel: 8 705 203 30-32
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on March 24, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
T-A TELECOM: Creditors Must File Claims by July 3
-------------------------------------------------
Creditors of LLP T-A Telecom A have until July 3, 2009, to submit
proofs of claim to:
Post office Box 195
Main Post Office
050000 Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on March 20, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
VAS SERVICE: Creditors Must File Claims by July 3
-------------------------------------------------
Creditors of LLP Vas Service have until July 3, 2009, to submit
proofs of claim to:
Micro District Merey, 17-27
Kyzylorda
Kazakhstan
The Specialized Inter-Regional Economic Court of Kyzylorda
commenced bankruptcy proceedings against the company on
March 25, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Kyzylorda
Aiteke bi Str. 29
Kyzylorda
Kazakhstan
=============
R O M A N I A
=============
* Moody's Reviews GLC Deposit Ratings of Three Romanian Banks
-------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the ratings of three Romanian banks in light of its
global review of systemic support indicators for the banking
system as well as due to the difficult operating conditions and
asset quality challenges. The bank ratings affected by this
rating action are:
i) Banca Comerciala Romana SA (Erste Group)
-- Bank financial strength rating of D remains unchanged with
stable outlook
-- Global local currency deposit ratings of Baa1/P-2 have been
placed on review for possible downgrade
-- Foreign currency deposit ratings of Baa3/P-3 remain unchanged
with stable outlook
ii) BRD - Groupe Societe Generale
-- BFSR of D+ (which maps to a Ba1 baseline credit assessment)
has been placed on review for possible downgrade
-- GLC deposit ratings of A2/P-1 have been placed on review for
possible downgrade
-- FC deposit ratings of Baa3/P-3 remain unchanged with stable
outlook
iii) Raiffeisen Bank SA
-- BFSR of D remains unchanged with stable outlook
-- GLC deposit ratings of Baa2/P-2 have been placed on review
for possible downgrade
-- FC deposit ratings of Baa3/P-3 remains unchanged with stable
outlook
Moody's previously used the local currency deposit ceiling as the
main input for its assessment of the ability of a national
government to support its banks. Although anchoring the
probability of support at the LCDC is appropriate in many
circumstances -- regarding the provision of liquidity to a
selected number of institutions over a short period of time --
this might overestimate the capacity of a central bank to support
financial institutions in the event of a banking crisis becoming
both truly systemic and protracted. This approach is outlined in
the Special Comment entitled "Financial Crisis More Closely Aligns
Bank Credit Risk and Government Ratings in Non-Aaa Countries",
which was published in May 2009.
The review of the GLC deposit ratings of the three banks will look
at the extent to which Romania's ability to provide support to its
banking system, if needed, is converging with the government's own
debt capacity as a result of the ongoing global economic and
credit crisis. Moody's will refine its assessment of systemic
support available from the Romanian government in order to capture
the impact of the erosion of the local economy's underlying credit
fundamentals and the reduced fiscal policy flexibility on the
government's ability to support the banking sector.
Factors that Moody's will consider in its assessment of systemic
support include the size of the banking system in relation to the
government's resources, the level of stress in the banking system,
the foreign currency obligations of the banking system in relation
to the government's own foreign exchange resources and changes to
the government's political patterns.
In addition, Moody's placed the D+ BFSR of BRD -- Groupe Societe
Generale on review for possible downgrade as a result of the
deepening economic recession in Europe, including in Romania,
which is likely to weaken the bank's asset quality. Over the next
few weeks, the rating agency will assess in more detail the extent
of the possible asset quality deterioration and provisioning needs
over the duration of the recession and their impact on the bank's
solvency.
Moody's recognizes that BRD -- Groupe Societe Generale's financial
condition is currently sound, but considers that the impact of the
ongoing downturn has not yet been fully reflected on the bank's
balance sheet and income statement. The increasing rate of
unemployment in Romania combined with a fall in exports and
industrial production are factors that are likely to drive the
volume of delinquent loans and related credit losses to higher
levels than previously incorporated in BRD -- Groupe Societe
Generale's ratings.
The last rating action on Banca Comerciala Romana SA was taken on
1 April 2009 when the outlook on its Baa1/P-2 GLC deposit ratings
was changed to negative from stable reflecting the negative
outlook on C- BFSR of its parent (Erste Bank).
The last rating action on BRD -- Groupe Societe Generale was taken
on May 11, 2007, when its BFSR was upgraded to D+ from D as a
result of the implementation of Moody's updated BFSR methodology.
The last rating action on Raiffeisen Bank SA was taken in
April 1, 2009, when its GLC deposit ratings were downgraded to
Baa2/P-2 from A3/P-1 following the downgrade of the BFSR of its
parent bank (Raiffeisen Zentralbank Oesterreich) to D+ from C.
Headquartered in Bucharest, Banca Comerciala Romana had total
assets of RON69.1 billion (EUR17.3 billion) as of the end of 2008.
Headquartered in Bucharest, BRD -- Groupe Societe Generale had
total assets of RON50.9 billion (EUR12.8 billion) as of the end of
2008.
Headquartered in Bucharest, Raiffeisen Bank had total assets of
RON19.4 billion (EUR4.9 billion) as of the end of 2008.
===========
R U S S I A
===========
ANGARA-LES LLC: Creditors Must File Claims by July 15
-----------------------------------------------------
The Arbitration Court of Kaliningradskaya commenced bankruptcy
proceedings against LLC Angara-Les (TIN 3911009003, PSRN
1023902006644, RVC 391101001) (Lumbering) after finding the
company insolvent. The case is docketed under Case No. ?21–
9790/2008.
Creditors have until July 15, 2009, to submit proofs of claims to:
A. Popov
Insolvency Manager
A. Nevskogo Str. 27-4
236016 Kaliningrad
Russia
The Debtor can be reached at:
LLC Angara-Les
Iskry Str. 38
Sovetsk
238750 Kalingradskaya
Russia
BIZON LLC: Creditors Must File Claims by July 15
------------------------------------------------
The Arbitration Court of Nizhegorodskaya commenced bankruptcy
proceedings against LLC Bizon (Purpose-Built Car Manufacturing)
(TIN 5258048912, PSRN 1035205163509) after finding the company
insolvent. The case is docketed under Case No. ?43–29668/2008,33–
175.
Creditors have until July 15, 2009, to submit proofs of claims to:
S. Goncharov
Insolvency Manager
Post User Box 312
603000 Nizhny Novgorod
Russia
The Court is located at:
The Arbitration Court of Nizhegorodskaya
Building 9
Kremlin
603082 Nizhny Novgorod
Russia
The Debtor can be reached at:
LLC Bizon
Iulskikh dney Str.1
603011 Nizhny Novgorod
Russia
DON-STAL-KONSTRUKTSIYA LLC: Creditors Must File Claims by July 15
-----------------------------------------------------------------
Creditors of LLC Don-Stal-Konstruktsiya (TIN 6143064074) (Ferro-
Concrete Constructions) have until July 21, 2009, to submit proofs
of claims to:
A. Semenyakov
Insolvency Manager
Post User Box 3199
344092 Rostov-on-Don
Russia
The Arbitration Court of Rostovskaya will convene on July 21,
2009, to hear bankruptcy proceedings on the company. The case is
docketed under Case No. ?53–20583/08
The Debtor can be reached at:
LLC Don-Stal-Konstruktsiya
7-ya Zavodskaya Str. 78
Volgodonsk
347381 Rostovskaya
Russia
GEVS-STROY LLC: Buryatia Bankruptcy Hearing Set July 9
------------------------------------------------------
The Arbitration Court of Buryatia will convene on July 9, 2009, to
hear bankruptcy supervision procedure on LLC Gevs-Stroy (TIN
0323119878, PSRN 1040302656789) (Construction). The case is
docketed under Case No. ?10–229/2009.
The Temporary Insolvency Manager is:
Office 300
Solnechnaya Str. 7a
670031 Ulan-Ude
Russia
Tel: (8-3012)230-501
The Debtor can be reached at:
LLC Gevs-Stroy
Prorechnaya Str. 5-55
Ulan-Ude
670013 Buryatia
Russia
RASPADSKAYA OJSC: Fitch Affirms LT Issuer Default Rating at 'B+'
----------------------------------------------------------------
Fitch Ratings has affirmed OJSC Raspadskaya's Long-term foreign
currency Issuer Default Rating at 'B+' and National Long-term
rating at 'A(rus)'. The Outlooks on both ratings are Stable.
Simultaneously, Fitch has affirmed Raspadskaya's senior unsecured
rating at 'B+' and Short-term IDR at 'B'. The Recovery Rating on
the senior unsecured debt is 'RR4'.
The ratings reflect Fitch's opinion that, despite the current
recession and mining industry downturn, Raspadskaya's credit
profile will remain within the parameters of the current rating.
This is because Raspadskaya's low cost base will allow it to
maintain a double-digit EBITDAR margin in 2009 despite the
negative pricing environment. The company stands out among other
Russian coking coal producers, due to its low cash costs of
production of US$30.9 per tonne of coal concentrate. Raspadskaya
has one of the highest profitability among CIS metals and mining
peers rated by Fitch with a FY08 EBITDAR margin of 72.8%. It is
the second-largest coking coal producer by volume in Russia, with
substantial coking coal reserves. Fitch also notes that the
company has started diversifying its client base by introducing
export sales and serving mid-sized customers. The share of export
sales in Q109 was 26%, with a potential to increase for the rest
of 2009.
Constraints on the ratings include concentration of sales as the
company's customers -- large metallurgical holding companies such
as MMK ('BB'/'B'/Stable), Evraz Group SA ('BB'/'B'/Rating Watch
Negative) and NLMK ('BB+'/'B'/Stable) -- accounted for 65% of
total sales volume in 2008 and 56% in 2007. Fitch notes that
deterioration in the operating and financial performance of these
large customers can have a significant impact on Raspadskaya and,
consequently, its credit profile. Raspadskaya has limited scale
of operations, which could constrain operational and financial
flexibility, particularly in an industry downturn. Fitch notes
that unlike many other mining companies it rates, such as Rio
Tinto ('BBB+'/'F2'/Rating Watch Positive) and Anglo American
('A-'/'F2'/Negative) which have wide product diversification,
Raspadskaya's operations are entirely in coking coal production.
Therefore, the company is exposed to fluctuations in coking coal
prices and volumes, particularly in the current weak economic
environment. Fitch also notes that Raspadskaya continues to be
involved in significant related-party transactions with its 40%
shareholder, Evraz Group SA. In FY08, the total amount of sales
to related parties was US$360 million (30% of revenue, 41% of
EBITDAR), and receivables from third parties were US$57 million
(80% of the total).
As a result of the recent economic downturn, Fitch forecasts
Raspadskaya's 2009 sales volumes to be 15%-20% below those of
2008. Fitch also expects revenue to fall by 70%-80% due to the
negative price environment. The agency estimates 2009 gross debt/
EBITDAR at 2.8x-3.0x, net debt/EBITDAR at 1.0x-1.3x and
EBITDA/interest coverage at 4.5-5.6x. Fitch is comfortable that
Raspadskaya's net leverage will not exceed the eurobond covenant
of net debt/EBITDA 3.0x.
The Stable Outlook reflects Raspadskaya's satisfactory liquidity
position. At FY08, Raspadskaya had cash and cash equivalents at
US$186.6 million versus expected short-term maturities of
US$49.9 million. Fitch expects that cash flow from operations and
free cash flow in 2009 will remain positive at 40%-50% and 25%-30%
of revenue, respectively.
At FYE08 the company had total debt of US$351 million and Fitch
does not expect the company to materially exceed this debt level
in 2009. All the debt is unsecured. Most of the company debt is
long-term (more than 85%) and consists of short-term loans for
replenishing working capital (US$51 million) and eurobonds
(US$300 million) maturing in 2012. At FYE08 Raspadskaya had gross
debt/EBITDAR of 0.4x and net debt/EBITDAR of 0.2x.
SOUTHERN TELECOM: S&P Affirms Corporate Credit Rating at 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'B' long-term corporate credit and 'ruA-' national scale ratings
on Russian regional telecommunications operator Southern
Telecommunications Co. and removed them from CreditWatch with
negative implications, where they had been placed on March 2,
2009. The outlook, which was stable before the CreditWatch
placement, is now negative.
"The affirmation reflects the recent improvement in the company's
near-term liquidity position," said Standard & Poor's credit
analyst Alexander Griaznov.
In June 2009, the company repaid its credit-linked notes issue of
Russian ruble 3.5 billion (US$110 million) and the amortization on
its Russian ruble bonds. This was mostly done by raising a
facility of RUR3 billion with Svyazbank (not rated), but also with
available cash balances.
In the fourth quarter of 2009, however, the company will face the
next wave of debt repayments, which will mostly include repayments
of its two Russian ruble bond issues for a total of
RUR4.75 billion. Although the company has not yet secured
refinancing for these debt maturities, it is currently negotiating
with a number of banks.
The key mitigant to Southern Telecom's weak liquidity is the
implied ongoing support of state-owned banks, which S&P assumes
will continue as long as the company remains majority owned by
state-owned holding company JSC Svyazinvest (not rated). Should
the company experience difficulty in refinancing its debt, owing
to the turmoil in local capital markets, S&P thinks it will
nevertheless likely benefit from the support of state-owned banks.
In addition to the weak liquidity position, the rating is also
constrained by Southern Telecom's relatively high leverage and the
need to further improve efficiency. The possible risks associated
with ongoing industry and regulatory reform and the moderate
economic characteristics of the service area also pressure the
ratings.
The ratings are supported by the company's status as a regional
incumbent telecoms operator, its dominant position in traditional
voice services, and growth in revenues from newer services such as
broadband Internet.
As of March 30, 2009, Southern Telecom's short-term maturities of
RUR11.6 billion exceeded available cash of RUR2.3 billion.
"If the company is unable to secure refinancing of its debt
maturing in the fourth quarter of 2009 at least one month before
the maturity, S&P could lower the ratings," said Mr. Griaznov.
S&P would likely revise the outlook to stable if the company is
able to refinance its maturities in the fourth quarter of 2009.
Rating upside is unlikely at this stage as long as the company
fails to implement a longer-term capital structure or more
proactive, structurally more conservative liquidity policy.
TAYGINSKIY CRASH: Creditors Must File Claims by July 15
-------------------------------------------------------
The Arbitration Court of Chelyabinskaya commenced bankruptcy
proceedings against LLC Tayginskiy Crash Stone Plant (TIN
74113010780) after finding the company insolvent. The case is
docketed under Case No. ?76-13988/2008-60-157.
Creditors have until July 15, 2009, to submit proofs of claims to:
S. Kudashev
Insolvency Manager
Post User Box 106
620000 Yekaterinburg
Russia
URALSVYAZINFORM OJSC: S&P Cuts Corporate Credit Rating to 'B+'
--------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on Russian regional telecommunications
operator Uralsvyazinform (OJSC) to 'B+' from 'BB-'. The rating
was removed from CreditWatch, where it was placed with negative
implications on March 2, 2009. The outlook, which was negative
before the CreditWatch placement, is now stable.
"The downgrade reflects Uralsvyazinform's liquidity management,
which S&P view as aggressive and incompatible with a 'BB-'
rating," said Standard & Poor's credit analyst Alexander Griaznov.
In the first quarter of 2009, the company repaid a RUR3 billion
(about US$95 million) bond, mainly with funds raised from
Svyazbank (not rated) and JSC VTB Bank (BBB/Negative/A-3). Both
facilities have a duration of 12 months, demonstrating
Uralsvyazinform's adherence to a short-term funding policy. In
the fourth quarter of 2009 and first-quarter 2010, the company
will have to repay RUR7.8 billion of debt. S&P understands,
however, that Uralsvyazinform has not yet negotiated refinancing
of these maturities. S&P believes the company is likely to obtain
adequate funding in time to cover these debt obligations, owing to
its relationship with state-owned banks and its cash-generative
profile. Nonetheless, S&P considers liquidity management to be
aggressive because of the company's tendency to refinance debt
only shortly before the respective maturity dates.
The main mitigating factor, in S&P's opinion, is the company's
cash-generative profile. Moreover, Uralsvyazinform generates
strong free cash flow of about RUR6 billion a year, which allows
for some visibility on liquidity management and debt repayment,
with substantially less refinancing requirements.
The ratings are also constrained by Uralsvyazinform's need to
control rising costs and preserve operating profitability, intense
competition in the regional mobile telecoms market, and regulatory
risks. The ratings are supported by S&P's assessment of
Uralsvyazinform's business profile as fair, reflecting the
company's dominant position in the regional fixed-line segment,
resilient market share in mobile telephony, and rapidly expanding
broadband segment.
"The outlook is stable because S&P expects Uralsvyazinform to
continue to generate strong operating cash flows, which should
allow it to finance its capital expenditures and internally fund
the bulk of its debt obligations," said Mr. Griaznov. "Some
additional external funding is likely to be necessary, however,
and S&P expects Uralsvyazinform to secure bank facilities on time,
notably, thanks to its strong relationships with several state-
owned banks."
* SAMARA OBLAST: S&P Changes Outlook to Neg.; Keeps 'BB+' Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on the Samara Oblast to negative from stable. At the same
time, the 'BB+' long-term issuer credit and 'ruAA+' Russia
national scale ratings were affirmed. S&P also affirmed the 'BB+'
and 'ruAA+' senior unsecured ratings on the oblast's debt.
Samara Oblast is in the Russian Federation (foreign currency
BBB/Negative/A-3; local currency BBB+/Negative/A-2; Russia
national scale 'ruAAA').
"The ratings on Samara Oblast reflect the local economy's ongoing
contraction, which has been leading to a noticeable reduction in
the oblast's budget revenues; the oblast's limited financial
flexibility; relatively high debt service in 2011-2012; and rising
contingent liabilities," said Standard & Poor's credit analyst
Felix Ejgel.
However, S&P believes the oblast's ability to contain spending
will ensure a still moderate budgetary performance in the medium
term, as well as moderate debt accumulation and continuing good
liquidity.
As of June 1, 2009, the oblast had almost no debt amortizing
within the next 12 months, while its cash including bank deposits
reached a high 25% of projected operating expenditures in 2009.
"We expect that falling revenues will squeeze Samara Oblast's
self-funding capacity and that the operating surplus and available
cash reserves could consequently not cover the projected debt
repayment within the next 12 months, raising refinancing risk,"
said Mr. Ejgel.
Deterioration of the oblast's financial performance, with
operating surpluses below projected levels, and deficits after
capital expenditures above 10% leading to further material debt
accumulation maturing in 2011-2012, could result in negative
rating actions.
S&P could revise the outlook to stable if the oblast manages to
adjust refinancing risks, either by improving its self-funding
capacity with cost-cutting measures and higher own revenues and
federal subsidies, or by reducing the amount of net debt maturing
in 2011-2012.
=============================
S L O V A K R E P U B L I C
=============================
SKYEUROPE HOLDING: Slovak Court Grants Creditor Protection
----------------------------------------------------------
Kevin Done at the Financial Times reports that SkyEurope
Holding AG said it had been granted protection from its creditors
by the district court in Bratislava.
The FT relates the low cost airline was forced to seek
court-administered protection from its creditors following several
years of heavy losses.
Headquartered in Bratislava, Slovakia, SkyEurope Holding AG --
http://www.skyeurope.com/-- is a low-cost passenger airline with
bases in the Czech Republic, Austria and Slovakia. It offers a
route network of 38 destinations in 18 countries from its bases in
Prague, Vienna and Bratislava. The Company's fleet consists of 14
Boeing 737-700NG aircrafts. SkyEurope Holding AG operates through
subsidiaries and affiliated companies: SkyEurope Airlines, a.s.,
SkyEurope Asset Management (Ireland), SkyEurope Asset Management
Hungary Kft., SkyEurope Airlines Hungary Kft, SkyEurope Airlines
A.S., Spolka Akcyjna, Oddzial w Polsce, SkyEurope Airlines, a.s. -
organizacni slozka and GroundEurope Kft.
=========
S P A I N
=========
TDA 25: S&P Lowers Rating on Class D Notes to 'D'
-------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D' its rating on
the class D notes issued by TDA 25, Fondo de Titulizacion de
Activos. At the same time, S&P lowered its ratings on the class B
and C notes, and affirmed and removed from CreditWatch negative
S&P's rating on the class A notes. S&P also affirmed its rating
on the NAS-IO notes. S&P lowered to 'D' the rating on the class D
notes following the failure to meet timely interest payments on
the interest payment date. When the level of defaulted loans
(defined as loans with arrears greater than 12 months) in this
securitization reaches a certain percentage of the initial
collateral balance, the priority of payments changes so as to
postpone interest payments to the related class of notes, and
divert these funds to amortize the most senior class of notes.
Trigger levels are 6.4%, 4.9%, and 3.9% for the class B, C, and D
notes respectively. As a result, interest has been missed on the
class D notes.
The class B and C downgrades take into account the relative
likelihood of nonpayment of interest in light of recognized
defaults and S&P's assessment of the default risk in the residual
portfolio.
The mortgage portfolios underlying this transaction continue to
generate high arrears levels. As of the end of April, loans in
arrears for more than 90 days, including defaulted loans, comprise
15.7% of the current mortgage portfolio. This is well above the
average for other Spanish residential mortgage-backed securities
transactions with similar seasoning. As of the end of Q1 2009,
average severe delinquencies for Spanish deals that closed in 2006
were 3.83%.
Recent performance data, combined with the portfolio
characteristics, suggests that delinquencies will continue to
rapidly increase over the next few quarters. From Q3 2008 to Q2
2009, severe delinquencies increased to about 15.7% from 8.9%.
For the same reporting period, 90+ day arrears plus defaults as a
percentage of the closing balance were 11.14%. This transaction
features a structural mechanism that traps excess spread to
provide for defaults. As a result of a significant portion of
loans being classified as defaulted, the transaction has fully
depleted its cash reserve. This reduces the likelihood of the
reserve being available to supplement any interest shortfalls.
The notes, issued in August 2006, are backed by a portfolio of
residential mortgage loans secured over properties in Spain.
Banco Gallego and Credifimo originated and service the loans.
Ratings List
TDA 25, Fondo de Titulizacion de Activos
EUR265 Million Residential Mortgage-Backed Floating-Rate Notes
Rating Lowered
Rating
------
Class To From
----- -- ----
D D CCC
Ratings Lowered and Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
B B BBB/Watch Neg
C CCC BB/Watch Neg
Rating Affirmed And Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
A AAA AAA/Watch Neg
Rating Affirmed
Class Rating
----- ------
NAS-IO AAA
=====================
S W I T Z E R L A N D
=====================
DETROIT DIESEL: Creditors Must File Claims by July 3
----------------------------------------------------
Creditors of Detroit Diesel (Schweiz) AG are requested to file
their proofs of claim by July 3, 2009, to:
Dr. iur. Paul Thaler
Mainaustrasse 19
8008 Zurich
Switzerland
The company is currently undergoing liquidation in Studen. The
decision about liquidation was accepted at a general meeting held
on January 9, 2009.
HEGEN AG: Creditors Must File Claims by July 8
----------------------------------------------
Creditors of Hegen AG are requested to file their proofs of claim
by July 8, 2009, to:
Hegen AG
Paracelsusstrasse 48
4058 Basel
Switzerland
The company is currently undergoing liquidation in Basel. The
decision about liquidation was accepted at a general meeting held
on April 15, 2009.
TSL T-SHIRT: Claims Filing Deadline Is July 1
---------------------------------------------
Creditors of TSL T-shirt Lager GmbH are requested to file their
proofs of claim by July 1, 2009, to:
Roman Sigg
Liquidator
In den Gartenhoefen 26
4153 Reinach
Switzerland
The company is currently undergoing liquidation in Reinach BL.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on April 22, 2009.
PRICITEC GMBH: Creditors Must File Claims by June 30
----------------------------------------------------
Creditors of Pricitec GmbH are requested to file their proofs of
claim by June 30, 2009, to:
Pricitec GmbH
Weidstrasse 3
8135 Langnau a.A.
Switzerland
The company is currently undergoing liquidation in Langnau am
Albis. The decision about liquidation was accepted at a
shareholders' meeting held on Dec. 4, 2008.
VISTA FILM: Claims Filing Deadline Is July 10
---------------------------------------------
Creditors of Vista Film AG are requested to file their proofs of
claim by July 10, 2009, to:
Viktor Meier-Huser
Loewenstrasse 25
8001 Zurich
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at an extraordinary
general meeting held on April 6, 2009.
=============
U K R A I N E
=============
BELOPOLYE MACHINEBUILDING: Court Starts Bankruptcy Procedure
------------------------------------------------------------
The Economic Court of Sumy commenced bankruptcy supervision
procedure on OJSC Belopolye Machinebuilding Plant (code EDRPOU
14015761).
The Insolvency Manager is:
B. Krivenko
Office 408
Independency Square 1
40000 Sumy
Ukraine
The Court is located at:
The Economic Court of Sumy
Shevchenko Avenue 18/1
40477 Sumy
Ukraine
The Debtor can be reached at:
OJSC Belopolye Machinebuilding Plant
Makarenko Str. 1
Belopolye
41800 Sumy
Ukraine
INDUSTRIAL DEV'T: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------------
The Economic Court of Kiev commenced bankruptcy supervision
procedure on CJSC Industrial Development Foundation (code EDRPOU
23510614). The company's insolvency manager is S. Gritsay.
The Court is located at:
The Economic Court of Kiev
B. Hmelnitskiy Str. 44-b
01030 Kiev
Ukraine
The Debtor can be reached at:
CJSC Industrial Development Foundation
Heroes of Sevastopol Str. 42-A
Kiev
Ukraine
INTER-INVEST COAL: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------------
The Economic Court of Lugansk commenced bankruptcy supervision
procedure on LLC Inter-Invest Coal (code EDRPOU 32458462).
The Insolvency Manager is:
S. Pilipenko
Office 81
Metallurgov Avenue 25
Mariupol
87500 Donetsk
Ukraine
The Court is located at:
The Economic Court of Lugansk
Heroes of GPW Square 3-a
91000 Lugansk
Ukraine
The Debtor can be reached at:
LLC Inter-Invest Coal
Zhukov Str. 15
Pervomaysk
93200 Lugansk
Ukraine
INTERUKR AGRO: Court Starts Bankruptcy Supervision Procedure
------------------------------------------------------------
The Economic Court of Kiev commenced bankruptcy supervision
procedure on LLC Interukr Agro (code EDRPOU 32042832).
The Insolvency Manager is:
M. Titarenko
Office 18
Saksagansky Str. 24
Kiev
Ukraine
The Court is located at:
The Economic Court of Kiev
B. Hmelnitskiy Str. 44-b
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC Interukr Agro
Institutskaya Str. 28
01021 Kiev
Ukraine
REKOM-Z LLC: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------
The Economic Court of Kiev commenced bankruptcy supervision
procedure on LLC Rekom-Z (code EDRPOU 33057635).
The Insolvency Manager is:
M. Titarenko
Office 18
Saksagansky Str. 24
Kiev
Ukraine
The Court is located at:
The Economic Court of Kiev
B. Hmelnitskiy Str. 44-b
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC Rekom-Z
Office 2
Chigorin Str. 49
01042 Kiev
Ukraine
* Moody's Cuts Long-Term GLC Deposit Ratings of 3 Ukrainian Banks
-----------------------------------------------------------------
Moody's Investors Service took rating actions on three Ukrainian
banks. The ratings of these institutions were downgraded:
Privatbank, Savings Bank of Ukraine and Ukreximbank.
The full list of ratings affected for these institutions can be
found below.
The rating action concludes the review for downgrade initiated by
Moody's on May 20, 2009, which focused on Ukraine's ability to
provide support to its banking system, as outlined in the Special
Comment entitled "Financial Crisis More Closely Aligns Bank Credit
Risk and Government Ratings in Non-Aaa Countries", which was
published in May 2009.
Moody's has refined its assessment of the ability of the Ukrainian
state to provide systemic support as the erosion in the local
economy's underlying credit fundamentals and the resulting reduced
policy flexibility has adversely affected the government's ability
to support the banking sector.
Moody's previously used the local currency deposit ceiling (LCDC;
Ba1 in the case of Ukraine) as the main input for its assessment
of the ability of the national government to support the banks.
Although anchoring the probability of support at the LCDC is
appropriate in most circumstances -- regarding the provision of
liquidity to a selected number of institutions over a short period
of time -- this might overestimate the capacity, and even
willingness, of a central bank to support financial institutions
in the event of a banking crisis becoming both truly systemic and
protracted.
Moody's therefore believes that the government's local currency
debt rating (usually adjusted by no more than two notches of
uplift due to the array of tools available to the central bank to
support the banking system) should have a greater weight when
considering the ability of the government to provide systemic
support.
Although the refined approach allows two notches of uplift from
the government bond rating as the main input for its assessment of
the ability of the national government to support the banks, given
the difficult economic and fiscal situation Ukraine is facing,
Moody's says that no notching uplift is appropriate. This
reflects Moody's view that the probability of the risk that
systemic banking losses will eventuate is medium to high. Thus,
the anchor used for measuring the government's ability to provide
systemic support is now Ukraine's government bond rating of B2
(negative outlook). Consequently, none of the abovementioned
banks receive any uplift for systemic support, following the
rating action.
Moody's views Ukraine as one of the riskier banking systems in
Eastern Europe, given a rapidly deteriorating economic environment
in Ukraine, as the credit stress in the banking system has
increased significantly, characterized by a deposit outflow from
the banking system and a rapid increase in non-performing loans,
which the rating agency expects to reach over 20% by the end of
2009 eroding the capital base of Ukrainian banks. Moody's has
already taken a number of rating actions to address the impact of
the crisis on Ukrainian bank ratings, lowering the bank financial
strength ratings and debt and deposit ratings of the majority of
the country's banks.
The alignment of the systemic support input with the government
bond rating also reflects Moody's view of the state's willingness
to support the banking system. Amid the recent crisis, the
Ukrainian government has established a recapitalization program
for the country's banking sector, pledging to inject UAH44 billion
(US$5.7 billion) into the Ukrainian banks' capital over the course
of 2009.
The Rating Actions
Moody's has taken these rating actions on the Ukrainian banks:
Privatbank
The long-term global local currency deposit rating was downgraded
to Ba3 (negative) from Ba1 (stable). All other Privatbank's
ratings were affirmed at their current levels.
Savings Bank of Ukraine
The long-term global local currency deposit and debt ratings were
downgraded to B2 (negative) from Ba1 (stable) and the national
scale rating was downgraded to A2.ua from Aa1.ua. All other
Savings Bank of Ukraine ratings were affirmed at their current
levels.
Ukreximbank
The long-term global local currency deposit rating was downgraded
to Ba3 (negative) from Ba1 (stable). All other Ukreximbank's
ratings were affirmed at their current levels.
Moody's last rating action on Privatbank was on May 20, 2009, when
global local currency deposit rating of Ba1 was placed on Review
for Downgrade.
Moody's last rating action on Savings Bank of Ukraine was on
May 20, 2009 when global local currency deposit rating of Ba1,
local currency debt rating of Ba1, national scale rating of Aa1.ua
were placed on Review for Downgrade.
Moody's last rating action on Ukreximbank was on May 20, 2009,
when global local currency deposit rating of Ba1 was placed on
Review for Downgrade.
===========================
U N I T E D K I N G D O M
===========================
AERODOME HOTEL: In Administration; PwC Appointed
------------------------------------------------
David Chubb and Mark Shires of PricewaterhouseCoopers LLP were
appointed joint administrators of Aerodrome Hotel Limited on
June 9, 2009.
Aerodrome Hotel Limited has a turnover of approximately GBP3
million per annum and employs approximately 40 staff.
David Chubb, partner and joint administrator,
PricewaterhouseCoopers LLP said: "Aerodrome Hotel Limited is the
operating company for the 109 bedroom, historic landmark hotel
located in Croydon. The Company has suffered as a result of the
current economic challenges facing the hotel industry and, having
run out of alternative options, sought the protection of
Administration. The administrators intend to trade the hotel
while sale options are progressed.
"Our immediate priority now is to seek a buyer for the business in
order to enable the long term survival of the hotel and preserve
the jobs of the employees. While a buyer for the business is
sought, we expect to continue trading and we will look to work
with the Company's existing management team, suppliers, employees
and customers to try and ensure that we achieve a positive
solution."
Prospective buyers should contact Matthew Atkinson at
matthew.atkinson@uk.pwc.com.
AVIV ELECTRONICS: Creditors' Meeting Set July 8
-----------------------------------------------
Creditors of insolvent Aviv Electronics Europe will meet on July 8
to nominate a liquidator for the company and appoint a liquidation
committee, evertiq.com reports.
According to the report, the meeting will be held at Verulam
House, 110 Luton Road, Harpenden, Hertfordshire AL5 3BL. The
purpose is to give a full statement of the position of the
company's affairs, together with a list of the creditors of the
company and the estimated amount of their claims, the report
states.
BRIXTON PLC: Segro Agrees Discounted All-Share Offer
----------------------------------------------------
Daniel Thomas and Philip Stafford at the Financial Times report
that Segro plc has agreed an all-share takeover for Brixton plc.
According to the FT, the two companies have agreed to swap 1.75
shares in Segro for every Brixton share, equivalent to about 40p a
share and significantly less than the closing price of 62 1/2p on
June 19. The FT says the GBP107 million deal values Brixton at
less than its market capitalization of GBP170 million at the close
of trading on Friday.
The FT discloses Segro, formerly known as Slough Estates, also
said it would raise up to GBP250 million through a share issue to
pay for the acquisition. The agreement, the FT notes, does not
yet have the recommendation from the Brixton board, and is subject
to the completion of final due diligence and the final approval of
the offer by the Segro board.
Waiver
The FT relates Brixton also Monday told shareholders at its annual
meeting that it had secured a waiver from its banks on a key
covenant test prior to July 31. The FT states it remains in talks
with its banks over ways to reduce the risk of breaching its
balance sheet covenants and will provide a further market update
in August.
Brixton plc -- http://www.brixton.plc.uk/-- is a United Kingdom-
based Company. The Company and its subsidiaries are engaged in
property investment and development, together with the management
of its properties. The Company owns nearly 90 estates with over
1,300 units. The Company's wholly owned subsidiary B-Serv Ltd is
responsible for asset management and customer service. The
Company owns 19 millions square feet of industrial and warehouse
property in the United Kingdom. Approximately 72% of the
Company's portfolio is located in the markets of Heathrow and Park
Royal.
BROOKLANDS EURO: Moody's Junks Rating on EUR50 Mil. Notes
---------------------------------------------------------
Moody's Investors Service has downgraded its rating of one note
issued by Brooklands Euro Referenced Linked Notes 2001-1 Limited.
The transaction is a slightly managed synthetic CDO referencing a
portfolio of corporate entities (56% of the total pool) and global
ABS securities (44% of the total pool), the majority of which are
CLO and subprime RMBS assets.
Moody's explained that the rating actions taken are the result of
(i) the expectations of increased losses in the underlying CLO
assets (ii) general corporate deterioration in the underlying
portfolio, which includes but is not limited to exposure to NXP
B.V.; Basell AF SCA; and two Icelandic banks, specifically
Kaupthing Bank hf and Landsbanki Islands hf. The transaction also
has a significant exposure to other corporate names which continue
to deteriorate in the current economic environment. This will
weigh on the ratings of the tranches in this transaction.
Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs and ABS CDOs as described in Moody's
The rating actions are:
Brooklands Euro Referenced Linked Notes 2001-1 Limited:
(1) EUR50,000,000 Class A Floating Rate Notes due 2013
-- Current Rating: Caa1
-- Prior Rating: B3, on review for possible downgrade
-- Prior Rating Date: 9 June 2009, B3 placed under review for
possible downgrade
BROOKLANDS EURO: Moody's Junks Rating on Class A2 Notes
-------------------------------------------------------
Moody's Investors Service has downgraded its rating of three notes
issued by Brooklands Euro Referenced Linked Notes 2004-1 Limited.
The transaction is a slightly managed synthetic CDO referencing a
portfolio of corporate entities (47% of the total pool) and global
ABS securities (53% of the total pool), the majority of which are
CLO and RMBS assets.
Moody's explained that the rating actions taken are the result of
(i) the expectations of increased losses in the underlying CLO
assets (ii) general corporate deterioration in the underlying
portfolio, which includes but is not limited to exposure to NXP
B.V.; Lehman Brothers Holdings Inc., which filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on September 15,
2008; and one Icelandic bank, Kaupthing Bank hf. The transaction
also has a significant exposure to other corporate names which
continue to deteriorate in the current economic environment. This
will weigh on the ratings of the tranches in this transaction.
The rating actions are:
Brooklands Euro Referenced Linked Notes 2004-1 Limited:
(1) EUR37,500,000 Class A1-a Floating Rate Notes due 2054
-- Current Rating: B2
-- Prior Rating: Ba1, on review for possible downgrade
-- Prior Rating Date: 9 June 2009, Ba1 placed under review for
possible downgrade
(2) EUR37,500,000 Class A1-b Floating Rate Notes due 2054
-- Current Rating: B2
-- Prior Rating: Ba1, on review for possible downgrade
-- Prior Rating Date: 9 June 2009, Ba1 placed under review for
possible downgrade
(3) EUR33,750,000Class A2 Floating Rate Notes due 2054
-- Current Rating: Caa3
-- Prior Rating: B3, on review for possible downgrade
-- Prior Rating Date: 9 June 2009, B3 placed under review for
possible downgrade
CANDOVER INVESTMENTS: Charterhouse Buys Wood Mackenzie Stake
------------------------------------------------------------
Hamish Rutherford at The Scotsman reports that Charterhouse
Capital Partners on Friday completed its acquisition of Candover
Investment plc's controlling stake in Wood Mackenzie.
The report recalls the Edinburgh-based group, which provides
analysis on the international energy sector, was put up for sale
by Candover earlier this year, as the London-based company sought
to raise cash to strengthen its balance sheet. According to the
report, Charterhouse bought Candover's 67 per cent stake for an
"enterprise value" of GBP553 million, with HSBC backing the
leveraged deal.
Sir George Mathewson is stepping down as chairman of Wood
Mackenzie to allow Charterhouse to install its own non-executives,
the report discloses.
On March 4, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News reported Candover Investments canceled a commitment
to invest EUR1 billion (US$1.26 billion) in its latest private
equity fund. The private equity firm stopped investing in the
fund as a lack of cash had severely curtailed its ability to
invest, Reuters cited the firm's main backer as saying. The move
came as the firm incurred a net loss of GBP212.56 million in 2008
compared with a profit of GBP134.94 million in 2007.
Candover Investments PLC -- http://www.candoverinvestments.com/
-- is an investment trust listed on the London Stock Exchange
since 1984. It invests in buyouts across Europe via funds managed
by its wholly owned subsidiary, Candover Partners, a European
private equity house.
As well as investing money on behalf of Candover Investments plc,
Candover raises substantial funds for buyout investment from third
parties such as pension funds, insurance companies, endowments,
charities and other professional investors.
CATALYST HEALTHCARE: Moody's Gives Positive Outlook on Ba2 Rating
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on the
underlying ratings of the GBP218.05 million of index-linked
guaranteed secured bonds due 2040 (the Bonds) issued by Catalyst
Healthcare (Manchester) Financing plc (the Issuer) and the
GBP175 million guaranteed secured loan provided by the European
Investment Bank (the EIB Debt) from negative to positive. The
underlying ratings remain at Ba2.
The Issuer is a financing conduit established in 2004 to on-lend
the proceeds of the Bonds and the EIB Debt to Catalyst Healthcare
(Manchester) Limited. Catalyst was formed to take over and
upgrade an existing hospital estate in the centre of Manchester,
England, which on completion will form a 1,470-bed hospital. The
project is being procured and will be paid for by the Central
Manchester University Hospitals NHS Foundation Trust (the Trust,
formerly known as Central Manchester and Manchester Children's
University Hospitals NHS Trust).
The positive outlook reflects the fact that the Trust has now
agreed availability payment deductions for the first three months
of 2009 at levels that are modest and consistent with performance
in line with contractual standards. This is coupled with
continuing strong construction progress: major building phases
have been handed over on April 30, May 29 and the last is expected
June 22, such that the outstanding works are essentially limited
to demolition and landscaping which will continue through to
summer 2010. Achievement of these construction milestones is a
major credit positive which would in other circumstances have
justified an upgrade to the underlying rating, but equally the
long-standing concerns which led to the underlying ratings being
downgraded in 2008 have still not been resolved fully to the
Trust's satisfaction. The Warning Notices imposed in 2008 have
still not been lifted and the availability payment deductions for
earlier periods dating back to January 2008 have still not been
resolved; however it appears that performance is now in line with
contractual requirements, so any remaining dispute should be
limited to determining the size of any historic liability, which
should in any case be borne by Catalyst's subcontractors.
The Bonds and the EIB Debt benefit from an unconditional and
irrevocable guarantee of scheduled principal and interest by Ambac
Assurance UK Limited. However, since Ambac's insurance financial
strength rating is now positioned at Ba3, the rating on the Bonds
and EIB Debt is currently determined by the underlying rating.
The last rating action on the Bonds and the EIB Debt was when
Ambac's insurance financial strength rating was downgraded from
Baa1 to Ba3 with developing outlook on April 13, 2009. This
resulted in the Bonds and EIB Debt being downgraded from Baa1 to
Ba2/negative, in line with their underlying rating.
The Issuer and Catalyst are special purpose companies formed in
2004 to take over, finance, upgrade and provide services to an
existing hospital estate in the centre of Manchester, England
under the UK's Private Finance Initiative.
CATTLES PLC: Close to Reaching Standstill Agreement w/ Creditors
----------------------------------------------------------------
Anousha Sakoui and Jane Croft at the Financial Times report that
is close to securing a "standstill" agreement from its bondholders
and senior creditors.
The FT discloses Cattles, which had its shares suspended in April
and is completing an internal inquiry into its impairment
provisioning policies, is due to pay a coupon to bondholders on
July 5 and is in talks with a syndicate of 22 banks, led by Royal
Bank of Scotland, to refinance GBP500 million of wholesale funding
by July 14. The FT says unless RBS and the rest of the group's
creditors agree to renew the GBP500 million credit line, Cattles
could potentially fall into administration.
According to the FT, under a standstill agreement, payments to
bondholders and debt refinancing would be suspended while the
company sorts out its future.
Cattles plc -- http://www.cattles.co.uk/-- is a financial
services company specializing in providing consumer credit to non-
standard customers in United Kingdom. The Company also provides
debt recovery services to external clients and its consumer credit
business, and working capital finance for small- and medium-sized
businesses. It also has a car retail operation, which is an
introducer of hire purchase customers to its consumer credit
business. Its business divisions include Welcome Financial
Services, The Lewis Group and Cattles Invoice Finance. Welcome
Financial Services consists of three businesses: Welcome Finance,
Shopacheck and Welcome Car Finance. Shopacheck provides short-
term home collected loans to some 260,000 customers through 52
branches. The Lewis Group provides debt recovery and
investigation services, serving both external clients and Welcome
Financial Services. In September 2007, it announced the
acquisition of a debt portfolio of United Kingdom credit card,
loan and overdraft receivables.
CEVA GROUP: Exchange Offer Cues S&P to Junk Corporate Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on CEVA Group PLC, the holding company for
The Netherlands-based contract logistics group Ceva Ltd., to 'CC'
from 'B-' following CEVA's announcement of an exchange offer. The
outlook is negative.
At the same time, the issue ratings on CEVA's senior unsecured
EUR505 million notes due 2014 and subordinated EUR225 million
notes due 2016 were lowered to 'CC' from 'CCC+' and 'CCC',
respectively. The recovery ratings on these notes are unchanged
at '5' and 6', respectively, indicating S&P's expectations of
modest (10%-30%) recovery at level '5', and negligible (0%-10%)
recovery at level '6', in the event of payment default.
In addition, the senior secured debt rating on CEVA's
US$1.5 billion-equivalent bank facilities was lowered to 'B-' from
'B', and the rating on the $400 million second-priority senior
secured notes was lowered to 'CCC' from 'CCC+'. The lowering of
these debt ratings reflects S&P's preliminary expectation that the
corporate credit rating on CEVA would unlikely be higher than
'CCC+' immediately following the completion of the transaction.
The recovery ratings on these debt issues are unchanged at '2' and
'5', indicating S&P's expectation of substantial (70%-90%)
recovery at level '2', and modest (10%-30%) recovery at level '5',
in the event of payment default.
"The downgrade follows CEVA's announcement that it has commenced
private exchange offers to exchange, at a maximum price of 50% to
62% of face value, a new series of 12% second-priority secured
notes, to a maximum aggregate value of EUR210 million," said
Standard & Poor's credit analyst Leigh Bailey. "These notes will
be exchanged for a portion of all of the holding company's
outstanding 8.5% senior unsecured notes, 10% subordinated notes,
and unrated unsecured loan facility.
"Under our criteria, S&P view an exchange offer at a discount to
par by a company under substantial financial pressure as a
distressed debt exchange and tantamount to a default."
The rating action does not in S&P's view reflect an increase in
CEVA's risk of bankruptcy. S&P recognizes that, if accepted, the
tender offer will moderately improve the holding company's debt
leverage ratio. Nevertheless, S&P believes that financial risk
will remain relatively high given Ceva Ltd's weak operating
performance, high leverage, and vulnerability to deteriorating
market conditions within the logistics industry.
S&P would anticipate lowering the corporate credit rating to 'SD'
(Selective Default) and the affected issue ratings to 'D'
(Default) on completion of the tender offer.
S&P's preliminary view is that the corporate credit rating on CEVA
would be unlikely to be higher than 'CCC+' immediately following
the completion of the transaction. This is because S&P believes
very weak market conditions and high leverage will continue to
constrain Ceva Ltd.'s operating performance.
F.E. MOTTRAM: In Administration; KPMG Appointed
-----------------------------------------------
Richard Fleming and Paul Dumbell from KPMG Restructuring were
appointed Joint Administrators to F.E. Mottram (Non Ferrous)
Limited, the Congleton-based manufacturer of secondary aluminium
products, on Monday, June 22, 2009.
Established in 1973, the firm makes a wide range of casting
alloys, hardeners and de-oxidants. The production capacity of the
site is 25,000 tonnes, making F.E. Mottram (Non Ferrous) one of
the largest single secondary aluminium smelters in the UK.
The operation has temporarily ceased to trade with the loss of 61
jobs.
Commenting on the appointment, Paul Dumbell, joint administrator
and director at KPMG Restructuring, said, "F.E. Mottram's
secondary aluminium smelting operation has been hit hard by the
global downturn and in particular, by the reduced level of orders
from car manufacturers and the reducing level of metal prices.
The administrators intend to preserve the site in Congleton with
the hope of finding a buyer for the business."
Neither the Ferro-Titanium business of F.E. Mottram Limited, based
in Sheffield, nor Dunstan and Wragg in Dronfield, are affected by
this administration and both continue to trade as normal.
FOUR SEASONS: PIK Lenders Reject Debt Restructuring Proposal
------------------------------------------------------------
Anousha Sakoui at the Financial Times reports that some of the
lenders to Four Seasons Healthcare Group have rejected a last
ditch proposal to restructure its GBP1.5 billion debt.
The FT relates a group of hedge funds holding senior ranking
payment-in-kind notes told the company on Friday that, while they
supported a consensual restructuring, the terms were unacceptable
and they wanted to be repaid.
The FT recalls last week, Hatfield Phillips, a financial trustee
that represents senior creditors, put forward a restructuring
proposal for creditors to approve by July 6. It indicated that if
no deal was agreed it would look to sell the company, the FT
discloses. According to the FT, the plan would roughly halve Four
Seasons' debt and give half of the company's equity to a group of
senior lenders that include the Royal Bank of Scotland, Fortis and
Nationwide. In a June 18 report the FT disclosed under the plan,
junior creditors holding so-called payment in kind loans, which
include hedge funds and RBS, would get a stake of up to 12 per
cent in exchange for writing off more than GBP200 million in
loans. The report said a sale would wipe out many of the lenders,
as recent valuations have put the company's worth at between
GBP700 million and GBP900 million because of falling property
prices.
Four Seasons, as cited by the FT, said the group and its advisers,
Talbot Hughes McKillop, had offered to meet the PIK lenders to
understand their position.
Four Seasons Health Care -- http://www.fshc.co.uk-- is one of the
largest care home (nursing home) operators in the UK. The company
runs some 300 nursing homes, and its Huntercombe division operates
about eight specialized health care centers (which provide mental
health and rehabilitation services) in England, Scotland, North
Ireland, and the Isle of Man. Allianz Capital Partners, the
private equity arm of Allianz Group, acquired the company from
Alchemy Partners for GBP775 million in 2004.
LLOYDS TSB: Moody's Affirms Non-Cum Preference Shares at 'B3'
-------------------------------------------------------------
Moody's Investors Service affirmed the senior unsecured ratings of
Lloyds TSB Bank plc and Bank of Scotland plc at Aa3 with a stable
outlook, as well as the A1 senior unsecured rating of the holding
companies Lloyds Banking Group and HBOS plc, also with a stable
outlook. The short-term P-1 ratings of all entities were also
affirmed. The Bank Financial Strength Rating of Lloyds TSB was
lowered one notch from C+ to C with a negative outlook (mapping to
a baseline credit assessment of A3), and the BFSR of Bank of
Scotland was confirmed at C- with a negative outlook (mapping to a
baseline credit assessment of Baa2).
"The lowering of Lloyds TSB's BFSR by one notch to C incorporates
the significant challenges lying ahead for the bank's management
to continue the integration of HBOS and its subsidiaries, as well
as the residual risk remaining in those assets that will not be
covered under the Asset Protection Scheme" said Elisabeth Rudman,
Vice President - Senior Credit Officer at Moody's and lead analyst
for Lloyds.
Ms. Rudman continued: "With the BFSR at C Moody's recognize these
challenges, but also take into account the underlying strength of
the business model of Lloyds TSB. Together with the risk shield
provided by the Asset Protection Scheme -- which covers a
significant amount of risks contained primarily within HBOS, but
also within Lloyds -- this should allow the group to emerge out of
this integration process in a solid position as one of the UK's
most important high-street lenders. This is also incorporated in
the Aa3 long-term debt and deposit ratings, which continue to
factor in high systemic support for this group".
The downgrade of certain subordinated capital instruments is
detailed below.
The government backed ratings assigned to the debt instruments
benefiting from UK government guarantee remain Aaa.
Downgrade of Lloyds Tsb Bfsr To C, Negative Outlook
This rating action concludes the review for possible downgrade of
Lloyds TSB's BFSR and subordinated capital instruments. The BFSR
had been placed on review for possible downgrade on 2 June 2009.
The C BFSR with a negative outlook reflects the ongoing challenges
facing Lloyds Banking Group in the integration of HBOS, the high
provisions resulting from the recession in the UK as well as the
pressure on underlying profitability due to the higher cost of
deposit and market funding, while also recognizing the benefit of
the insurance cover of the APS for the riskier assets and the
additional government capital (GBP15.6 billion of B shares issued
as payment for participation in the APS).
Moody's believes that the APS (which is expected to be finalized
in the next few months and will cover around GBP260bn of assets)
and the accompanying government capital should provide a
significant underpinning to the financial strength of Lloyds
Banking Group. Indeed the availability and expected full
implementation of the APS is a critical requirement for the BFSR
at the current level, given the risks within the group's books,
particularly the HBOS commercial property exposures and higher-
risk mortgage exposures.
The bank has estimated that its pro-forma Tier 1 ratio (which
includes the impact of the APS) will increase to 18.7% and the
Core Tier 1 ratio to 14.5%. However, Moody's expects these high
capital ratios to reduce over the near-term as the bank absorbs
the GBP25bn first-loss piece, takes provisions on non-covered
assets and absorbs costs associated with the integration of HBOS.
In the absence of more detailed information, Moody's has made
conservative assumptions regarding the performance of assets that
will be outside the APS, and expects that the group's capital
levels should still remain at a high level over the next 12 months
in Moody's base case, but could drop much lower in Moody's severe
loss estimate.
The negative outlook indicates (i) the outstanding clarification
as to which assets will be covered by the APS which will be
crucial for the group's future performance, but also (ii) the
continuing uncertain macroeconomic outlook, combined with the
group's sensitivity to Moody's stressed loss estimate, which could
further weaken its capital base; and (iii) the challenges the
group will need to manage for the next several years, namely the
restructuring and full integration of HBOS.
Downward pressure on the BFSR would most likely emerge should
further capital be required to support the business. An upgrade
of the BFSR is not likely in the short to medium term - however,
given the substantial franchise of the group in UK retail banking,
Moody's could envisage upward pressure on the BFSR following the
successful integration of HBOS and the reduction of the remaining
concentrations/ higher risk assets not covered by the APS.
Confirmation Of Bank Of Scotland C- Bfsr, Outlook Negative
This rating action concludes the review for possible downgrade of
the Bank of Scotland's BFSR. The BFSR had been lowered to C- on
February 16 2009 and the rating left under review for possible
further downgrade in order to assess the impact of the planned UK
Government Asset Protection Scheme.
Based on the announcement that around 83% of the APS assets will
come from HBOS, the Bank of Scotland will have insurance cover for
nearly half its customer loan book. Over the long term, as the
bank becomes fully integrated within Lloyds Banking Group and the
assets that are outside the risk appetite of the group are wound
down, Moody's would expect the BFSR of Bank of Scotland to move up
to the level of Lloyds TSB.
Affirmation of Senior Debt Ratings
The long-term rating of Lloyds TSB and Bank of Scotland was
affirmed at Aa3 (stable outlook) and of LBG and HBOS at A1 (stable
outlook). These ratings incorporate Moody's view of the very high
probability of support from the Aaa-rated UK government for the
group. In Moody's opinion uncertainty remains over potential
requirements from the EU for LBG to reduce its high market shares
in the UK as part of its agreement to approve the government
support it has received. However, Moody's expect that LBG will
remain one of the largest retail and commercial banks in the UK
and that this size and presence will result in the continuation of
the very high probability of support from the UK government in the
future.
Downgrade of Certain Subordinated Capital Instruments
The non-cumulative preference shares of all entities were affirmed
at B3 (stable outlook), as their ratings are based on an Expected
Loss analysis (for further information see the press release of
June 2, 2009). The ratings of the remaining subordinated capital
instruments of the Group are linked to the BFSRs of the banks
(also incorporating parental support in the case of Bank of
Scotland and HBOS, and one notch structural subordination for the
holding companies), and have been adjusted:
Lloyds TSB:
-- Senior Subordinated Debt from A3 (RUR) to Baa1 (negative
outlook)
-- Junior Subordinated Debt from Baa1 (RUR) to Baa2 (negative
outlook
-- Cumulative Preference Shares from Baa2 (RUR) to Baa3
(negative outlook)
-- Non-cumulative Preference Shares: affirmed at B3 (stable
outlook)
Lloyds Banking Group:
-- Senior Subordinated Debt from Baa1 (RUR) to Baa2 (negative
outlook)
-- Non-cumulative Preference Shares: affirmed at B3 (stable
outlook)
Bank of Scotland:
-- Senior Subordinated Debt confirmed at Baa1 (negative outlook)
-- Junior Subordinated Debt from Baa1 (RUR) to Baa2 (negative
outlook
-- Cumulative Preference Shares from Baa2 (RUR) to Baa3
(negative outlook)
-- Non-cumulative Preference Shares: affirmed at B3 (stable
outlook)
HBOS:
-- Senior Subordinated Debt from Baa1 (RUR) to Baa2 (negative
outlook)
-- Junior Subordinated Debt from Baa2 (RUR) to Baa3 (negative
outlook)
-- Non-cumulative Preference Shares: affirmed at B3 (stable
outlook)
Scottish Widows And Clerical Medical Finance Rating Actions
Scottish Widows:
-- Junior Subordinated Debt from Baa1 (RUR) to Baa2 (negative
outlook)
Clerical Medical Finance:
-- Senior Subordinated Debt (guaranteed by Clerical Investment
Group Ltd) confirmed at Baa1 (negative outlook)
-- Junior Subordinated Debt (guaranteed by Clerical Investment
Group Ltd) from Baa1 (RUR) to Baa2 (negative outlook);
The rating actions on the subordinated debt of SW and CMF reflect
the alignment of the insurance operations' subordinated ratings
and outlooks to the subordinated ratings and outlooks of the
corresponding banking operations within Lloyds. Moody's believes
that Lloyds' capital base is increasingly managed centrally. The
revised ratings and outlooks on the insurance subsidiaries
therefore reflect Moody's view that the insurance subordinated
ratings of SW and CMF are constrained by the ratings on the
subordinated debt of the correspondent parent banking companies
within Lloyds.
Withdrawal of Ratings Of Cheltenham & Gloucester
Moody's Investors Service has adjusted the ratings of Cheltenham &
Gloucester in line with the ratings of Lloyds TSB: BFSR downgraded
from C+ to C (negative outlook); Senior Subordinated Debt
downgraded to Baa1 (negative outlook) from A3 (RUR).
Moody's will withdraw all outstanding ratings of Cheltenham &
Gloucester, which is no longer authorized as a bank and has no
banking assets or liabilities outstanding.
The last rating action on the group was on June 2, 2009, when
certain hybrid instruments were downgraded, and the C+ Lloyds TSB
BFSR was placed on review for possible downgrade.
ROYAL BANK: UKFI Approves New Pay Package for CEO Stephen Hester
----------------------------------------------------------------
Jon Menon and Michael J. Moore at Bloomberg News report that the
U.K. Financial Investments Ltd has approved a new pay package for
Royal Bank of Group Plc chief executive officer Stephen Hester.
According to Bloomberg News, Mr. Hester, 48, will get up to 4.8
million shares under a medium-term performance plan and share
options for 9.55 million ordinary shares as part of a remuneration
package. RBS, as cited by Bloomberg News, said the options are
priced at 37.2 pence. Bloomberg News says shares of the
government-controlled bank will have to rise to 70 pence and
outperform its peers for Mr. Hester, who has a GBP1.2 million
annual salary, to receive the full amount of shares and options in
the new pay package.
Bloomberg News relates the Unite trade union criticized the UKFI,
which manages the government's stake in the bank, for approving
the pay package. "Unite is appalled that instead of striving to
save jobs in this state-controlled bank, UKFI is approving such an
incentive plan," Bloomberg News quoted Graham Goddard, deputy
general secretary, as saying in a statemen. "Staff and customers
are sick of seeing senior bankers earn such huge financial
awards."
About RBS
The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks. The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing. On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO). In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.
YELL GROUP: May Seek Covenant Reset to Avoid Breach
---------------------------------------------------
Salamander Davoudi and Anousha Sakoui at the Financial Times
report that Yell Group plc said it may have to re-set its
financial covenants with its lenders for a second time
to avoid a breach, citing "increasingly uncertain trading
conditions".
The FT discloses PwC, the auditors, highlighted the risks of Yell
breaching loan covenants by the turn of the year, which would
theoretically allow banks to demand full repayment of its GBP4.3
billion debt load. Yell, whose lead lending bank is HSBC, must
refinance GBP3 billion between now and 2011, the FT says. The
company, the FT states, has GBP323 million of bank debt to repay
this time next year. According to the FT, Yell would breach its
lending terms if earnings before interest, taxation, depreciation
and amortization fell more than 13 per cent in the year to
March 31, 2010.
The FT relates analysts have warned that Yell's market
capitalization of GBP231.8 million relative to its debt pile would
make a rights issue difficult.
Headquartered in Reading, England, Yell Group plc --
http://www.yellgroup.com/-- is an international directories
business operating in the classified advertising market through
printed, online, and phone media in the U.K. and the US. Yell
also owns 100% of TPI (renamed "Yell Publicidad"), the largest
publisher of yellow and white pages in Spain, with operations in
certain countries in Latin America. Yell's revenue for the twelve
months ended March 31, 2008 was GBP2,219 million and its
Adjusted EBITDA was GBP738.9 million.
* * *
Yell Group plc continues to carry Moody's Investors Service's Ba3
Corporate Family Rating and B1 Probability of Default Rating. The
ratings were placed on review for possible downgrade by Moody's in
February 2009.
* PwC Says Ailing Companies Have Only 50pc Chance of Rescue
-----------------------------------------------------------
Helia Ebrahimi at Telegraph.co.uk reports that according to
research by accountants PricewaterhouseCoopers, troubled
companies have only a 50pc chance of being rescued in the current
economic environment.
Telegraph.co.uk discloses according to the survey of 150
turnaround specialists who took part in the PWC/Daily Telegraph
report, a lack of support from lenders, scarcity of funding and
bad management continue to be the driving factors pushing
companies towards failure.
Businesses within the automotive, construction, hospitality and
leisure and property sectors are particularly at risk
according to the turnaround specialists, Telegraph.co.uk notes.
The turnaround directors who took in the survey also pointed to
inappropriate capital structures with too much debt and
inexperienced managers as the main characteristics displayed by
companies in distress, Telegraph.co.uk states.
* EUROPE: Fitch Says Outlook for Automotive Sector Still Difficult
------------------------------------------------------------------
Fitch Ratings said in a special report published that the outlook
for Europe's automotive industry continues to remain difficult
over the next 18 months, as it experiences one of its deepest ever
downturns. However, not all companies will be affected to the
same extent, as reflected by the agency's ratings of the sector.
"The main differentiating factors between the lowest- and highest-
rated groups include the extent of product and geographical
diversification, recent and expected market share developments and
product positioning, strength of financial profiles entering the
recession, and Fitch's expectations of the relative "exit"
profiles of manufacturers from the current downturn," said
Emmanuel Bulle, Senior Director in Fitch's European Corporates
group. "These expectations include increases in leverage and the
capacity to take advantage of a return to trend levels of economic
growth, and a company's ability to implement further cost-savings
and restructuring measures, and to curb investments and capex."
Fitch's recent rating actions reflect expectations for weak
macroeconomic growth and a sharp industry contraction for the
remainder of 2009 and 2010. Lower consumer spending and
confidence are likely to pressure new vehicle sales and the
sector's product mix, as consumers increasingly opt to purchase
cheaper vehicles which are less profitable for manufacturers.
Fitch is also growing increasingly concerned about the high risk
of a pay-back effect on new vehicle sales when various incentive
schemes, which are currently being offered in several countries
stop and/or when demand for incentivized purchases declines.
Fitch believes that weak demand and lower sales will exacerbate
the general overcapacity of Europe's auto industry, and lead to
forced restructurings and strategic decisions. However,
rationalization and restructuring will not be immediate, and may
take a few years. The agency also believes it will be costly and
weigh further on companies' earnings and cash flows, as charges
will not be only related to accounting but also have a cash
impact. Financial support, potential cash injections into
distressed suppliers or more favorable payment terms are also
likely.
Manufacturers' financial structures have already been severely
impacted and Fitch expects further volatility of, and stress on,
financial profiles (as captured in its recent prospective rating
actions on the sector), notably profitability, cash generation and
leverage. The role, and potential support, of governments and
European institutions remains uncertain. Several governments have
already shown their willingness to intervene and provide implicit
or explicit support, through guarantees, loans, or scrapping
incentives. However, the impact of such support should not be
overestimated as it may be conditional, nor will it be equal for
all groups, and will not last indefinitely.
Against this backdrop, the auto industry still benefits from
strengths and opportunities, including long-term growth prospects.
Despite the saturation of a number of developed markets, worldwide
growth in vehicle sales should be supported by emerging markets
demand, continuous demographic expansion, and the lack of
substitution products. The significant and pivotal importance of
the auto industry in several countries and regions from a
strategic, economic, political and social perspective provides
further support to the auto sector as a whole.
On March 24, 2009, a Fitch portfolio review led to Daimler AG's
ratings being affirmed at 'BBB+'/'F2', while its Outlook was
revised to Negative from Stable; Fiat S.p.A.'s and Peugeot S.A.'s
ratings being downgraded to 'BB+'/'B' from 'BBB-'/'F3'
respectively; and Renault SA's rating being downgraded to 'BB'
from 'BBB-'. The Outlooks on Fiat, PSA and Renault are Negative.
In addition, Volkswagen Group's ('BBB+'/'F2') ratings remain on
Rating Watch Negative.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/booksto order any title today.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine
C. Tumanda, Joy A. Agravante, Marie Therese V. Profetana and Peter
A. Chapman, Editors.
Copyright 2009. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *